Millions of Brits overpay £110 in car insurance by forgetting to shop around for a cheaper provider
MILLIONS of Brits are unknowingly overpaying for their car insurance each year by forgetting to shop around for a better deal.
Some drivers are being slugged as much as £110 more on their annual cover, according to new figures.
A recent study by Compare the Market revealed more than six million people across the UK forget to change their car insurance providers when their policy comes to an end.
Shockingly, these motorists are losing £675million every year by not looking around for a cheaper policy.
The cost of your policy is based on how likely your motor is to be damaged or stolen.
Insurers use a range of factors, including age, previous crash history and even your occupation, to calculate how much it will cost for cover.
How to cut the cost of car insurance
- Never accept a renewal quote
Your policy could double overnight if you're not careful. Make sure you put a reminder in your phone or diary of when it's up and shop around for a better deal. - Buy 21 days in advance
Purchasing a policy three weeks in advance can cut your bill in half. Buy 30 days in advance it could cost you hundreds more because there aren't as many policies out there. Taking out a policy at the last minute and insurers will deem you a higher risk and whack up your premium. - Use cashback sites
and and often have deals for cashback if you click through to the comparison sites via their own links and then go on to take out a policy, so look here first. There are also cashback offers if you go direct to the insurers but it's much more important to get the best premium so don't be tempted by these unless you already know the insurer in question is offering the cheapest quotes for you. - Check more than one comparison site
- For the best range of quotes, make sure you check , , and or as many of these as you can.
- Don't forget the ones comparison sites miss
Two of the biggest insurers, and aren't on comparison sites so you'll need to check them too to see if they can offer you a better deal. Again, click through to these from one of the cashback sites mentioned above. - Pay annually
Monthly installments mean you can spread the cost of insurance, but they come at a cost. Pay in one go to save more. We found you can save as much as £440 a year by paying car insurance bills annually. - Try tweaking your job title
Sometimes there is more than one way to accurately describe your job and trying different options can save you money. Never lie or use a misleading description, but found one example where a "chef" saved £88 a year by describing himself as "kitchen staff" instead which is still accurate. - Avoid the unnecessary extras
Typical car insurance can include legal assistance, courtesy car cover, personal accident cover, windscreen cover and protected no claims bonus. However, you are likely to pay up to £140 a year for these benefits, so decide what cover you really need rather than just accepting what an insurer adds on. - Look at telematics policies if you're a younger driver
These insurance policies use a small box fitted in your vehicle or a mobile phone app to monitor how safely you drive, by checking your speed and how sharply you brake among other things. For young motorists who pay the highest premiums, this can mean a saving of £370 on a standard policy of £3,200, for a typical 18 year-old driver, according to Gocompare.
But by shopping around for a suitable quote, drivers can save hundreds in additional costs.
Younger drivers have the most to gain by remembering to switch, with 18 to 24-year-olds saving an average of £226.
If you're going to switch, the best time to do so is 24 days before a policy ends.
According to the study, 43 per cent of drivers over the age of 24 said the main reason for letting their cover roll over is because it's a chore.
While another 40 per cent said they would value a tool which makes it easier to switch.
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Dan Hutson, head of motor insurance at Compare the Market said: "Car insurance is a significant expense for many drivers and the cost of cover has risen steeply over the past few years.
"Nearly a third of motorists say that they struggle to afford the cost of insurance.
"The most effective way to avoid price hikes is to compare the market for the most competitive provider but taking the time to switch is something many people just forget to do."